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1. Key performance indicators
Path: Company / Key performance indicators

Key financial Indicators 2011 2010 2009 2008 2007 Change 2011/2010,% Sales revenue, mn USD 44,172 32,912 24,305 33,870 22,768 34% Adjusted EBITDA, mn USD 10,158 7,271 6,037 8,610 6,601 40% Operating income, mn USD 6,979 4,673 3,461 6,249 4,899 49% Income before tax...


2. Downloads
Path: Downloads

Annual Review 2011 in English PDF (12.4 Mb) Annual Review 2011 in Russian PDF (13.6 Mb) Consolidated Financial Statements 2011 in English PDF (1.22 Mb) Consolidated Financial Statements 2011 in Russian PDF (1.39 Mb) Financial Statements in accordance with RAS in Russian PDF (2,9 Mb)...


3. Registered Capital &Equity Structure

The Company has registered capital ofRUB 7,586,079.4224, consisting of4,741,299,639 common shares, with face value ofRUB 0.0016each. The state registration number ofGazprom Nefts common share issue is1-01-00146-. AsofDecember31, 2011, the shareholder register contained...


4. Corporate Governance
Path: Corporate Governance

STRUCTURE OF GAZPROM NEFT’S GOVERNING BODIES: The General Meeting of Shareholders isthe supreme governing body and covers the most important issues ofCompany business. The Annual General Meeting ofShareholders ofGazprom Neft was held on09.06.2011 (Minutes No. 0101/01 dated 14.06.2011,...


5. KEY INFORMATION
Path: Company

Events January 2011 Gazprom Neft and TNK-BP agree to set up a joint venture for development of Messoyakha oil and gas deposits in the northern part of the Yamal Peninsula. all events OPERATING GEOGRAPHY IMPLEMENT MAJOR PROJECTS More BUSINESS MODEL COMPANY STRUCTURE


6. The Directors
Path: Corporate Governance / THE DIRECTORS

Russian corporate law states that the Board ofDirectors isresponsible for determining the Companys corporate priorities and setting main guidelines for its business. Inview ofthe strategic importance ofthe Board ofDirectors, itmust enjoy the confidence ofshareholders and its functions...


7. Membership of the Management Board
Path: Corporate Governance / MEMBERSHIP OF THE MANAGEMENT BOARD

The structure ofexecutive bodies atGazprom Neft isregulated bythe Company Articles: they are the Management Board and the Chief Executive Officer. The Management Board ofGazprom Neft isacollegiate executive body that manages current activities. Inaccordance with the Articles...


8. ADDRESS TO SHAREHOLDERS, INVESTORS& PARTNERS
Path: Company /  ADDRESS TO SHAREHOLDERS, INVESTORS & PARTNERS

Dear shareholders & investors! Our Company gave arecord-breaking performance onall fronts in2011, leading the Russian industry byrates ofgrowth of production, refining, and sales through premium channels. Gazprom Neft has once again proved itself...


9. Calendar of Events 2011
Path: Company / CALENDAR OF EVENTS 2011

January Gazprom Neft and TNK-BP agree toset upajoint venture for development ofMessoyakha oil and gas deposits inthe northern part ofthe Yamal Peninsula. ">Design ofthe packaging can used for G-Energy motor-oil wins the prestigious GOODDESIGN award from the...


10. Development Strategy
Path: Company / DEVELOPMENT STRATEGY

Our Mission Tooffer consumers high quality energy resources, toconduct business fairly and responsibly, totake care ofour employees, and tobealeader onefficiency, guaranteeing long-term, stable growth for the company. Strategic goal Tobecome alarge, Russia-based international player, possessing aregionally-diversified...


11. Asset management & corporate structure
Path: Company / Asset management & corporate structure

Work toimprove the corporate management structure ofGazprom Neft seeks toraise the efficiency ofthe Companys business asavertically integrated enterprise, and tooptimize management ofthe main activities conducted bysubsidiaries. There were major organizational changes atthe Company during 2011. Gazprom Neft continued tointegrate its new assets into its overall corporate management...


12. Operating geography
Path: Company / Operating geography

Geography of production Geography of subsoil use Lubricants Production of bitumen materials 24 Krasnoyarsk territory 55 Omsk region 56 Orenburg region 70 Tomsk region 72 Tyumen region 86 Khanty-Mansiysk Autonomous District Yugra 89 Yamalo-Nenets Autonomous...


13. Competitive Position
Path: Company / Competitive Position

Gazprom Neft, together with its subsidiaries, constitutes avertically integrated oil company operating mainly inthe Russian Federation. The Company isengaged inexploration and development ofoil and gas fields, production ofcrude oil and gas, refining and retailing ofpetroleum products...


14. Key Performance Indicators in 2011, by Segments
Path: EVENTS 2011 / KEY PERFORMANCE INDICATORS IN 2011, BY SEGMENTS

Gazprom Neft today is a fast growing business & has set itself the following goals: leadership indevelopment ofthe northern territories ofYamal-Nenets Autonomous District; rational mineral resource use, focused onthe depleting resource base intraditional production...


15. Geological exploration & productionof crude oil & gas
Path: EVENTS 2011 / GEOLOGICAL EXPLORATION & PRODUCTION OF CRUDE OIL & GAS

InSeptember 2009, the Board ofDirectors ofGazprom Neft approved adevelopment strategy for the Companys exploration and production business, which istargeting anincrease ofannual hydrocarbons production to100mn TOE by2020. The Companys reserves-to‑production ratio...


16. Oil refining
Path: EVENTS 2011 / OIL REFINING

Volume of refining, mn t Source: Company data download xls The Companys strategic goals inthe refining sector are: raising annual refining inRussia to 38-40 mn t; increasing annual petroleum refining capacity inEurope to 25-30 mn t; making products that meet the Russian Governments Technical...


17. Sales of Petroleum Products
Path: EVENTS 2011 / SALES OF PETROLEUM PRODUCTS

OnNovember18, 2009, the Companys Board ofDirectors approved amarketing strategy for petroleum product sales inRussian and CIS markets upto2020. The strategy sets ambitious marketing goals which can besummarised under three headings: business upscaling, brand development, and increase...


18. Premium Business Segments
Path: EVENTS 2011 / PREMIUM BUSINESS SEGMENTS

Wehave distinct goals for each sub-segment inour petroleum product business: aviation fuel; lubricants; bituminous materials; petrochemicals; and bunkering. Strategic development plans for each ofthese sub-segments should lead toadoubling ofsales by2020...


19. Exports of Crude Oil & Petroleum Products Oil
Path: EVENTS 2011 /  EXPORTS OF CRUDE OIL & PETROLEUM PRODUCTS OIL

Oil exports to non-CIS countries, 20092011 Source: Company data download xls Petroleum product exports, 20092011 Source: Company data download xls Structure of crude oil exports from Russia by transport type Source: Company data download xls Gazprom Neft is a major exporter of crude oil and petroleum products...


20. Petrochemical Industry
Path: EVENTS 2011 / PETROCHEMICAL INDUSTRY

Gazprom Neft isamajor Russian producer ofaromatic hydrocarbons (benzene, paraxylene, orthoxylene and toluene) and olefin liquefied hydrocarbon gases (propane-propylene fraction). Sales ofaromatics in2011 were 393,000t, ofwhich 263,000t were sold inRussia. The Companys share...


21. Innovation
Path: EVENTS 2011 / INNOVATION

Technology innovation inpriority business areas isaprerequisite for the Companys successful long-term growth. Gazprom Nefts strategic goal istoproduce 100mn TOE annually by2020. This will require year-on-year growth ofhydrocarbon output amajor challenge, which will make great demands onthe energy and abilities ofthe Companys science and innovation specialists. They need toincrease...


22. Investment Activities
Path: EVENTS 2011 / INVESTMENT ACTIVITIES

Gazprom Nefts fundamental investment principles are: To comply with the investment plans set out in the Companys approved Strategy; To implement the most efficient projects, and to create an optimized investment portfolio; To implement collegiate decisionmaking and...


23.
Path: MD&A / 

This report offers a review of Gazprom Nefts financial position as of December 31, 2011, and should be examined together with the Companys financial statements and related explanations, prepared in accordance with the US Generally Accepted Accounting Principles (US GAAP).


24. Definitions & conversion methodology
Path: MD&A / DEFINITIONS & CONVERSION METHODOLOGY

This report offers areview ofGazprom Nefts financial position asofDecember31, 2011, and should beexamined together with the Companys financial statements and related explanations, prepared inaccordance with the US Generally Accepted Accounting Principles (USGAAP) This report discloses the financial situation...


25. Forward-looking Statements
Path: MD&A / FORWARD-LOOKING STATEMENTS

This Report contains forward-looking statements concerning the financial position, operating results and business ofGazprom Neft and its consolidated subsidiaries. All statements except those that refer toaccomplished facts can and should beconsidered asforward-looking statements...


26. Key Risk Factors
Path: MD&A / KEY RISK FACTORS

Risk management has become an integral part of the corporate environment of Gazprom Neft, by virtue of the following processes: Implementing a risk-oriented approach in all aspects of production and management; Undertaking systematic analysis of identified risks; Building a system to control risks and monitor the efficiency of risk-management activities; Making all employees aware of Gazprom Nefts basic...


27. 2011 Key events
Path: MD&A /  2011 KEY EVENTS

Anew production cluster was created inOrenburg atthe eastern sector ofthe Orenburg field (reassigned from JSCGazprom) and two fields Kapitonovskoye and Tsarichanskoye were purchased; 100% ofSibir Energys capital was consolidated; Interest in NIS was...


28. Comparis on of results for 2011 & 2010
Path: MD&A / COMPARIS ON OF RESULTS FOR 2011 & 2010

Rising oil prices, growth inrefining and optimization ofthe sales structure contributed toimproving financial performance, with revenues upby34.2% and adjusted EBITDA upby39.7%; Production ofhydrocarbons grew by8.2% compared with 2010. Production ofgas rose by127.9%, raising total...


29. Operating segments
Path: MD&A / FINANCIAL APPENDICES / OPERATING RESULTS / OPERATING INDICATORS & ANALYSIS / Operating segments

The Companys operations are in two main segments: Exploration and production, consisting of exploration, development, and production of oil and gas. Refining, marketing and sales including crude refining, purchasing, sale and transportation of crude oil and petroleum products. The two segments are interdependent:...


30. Operating indicators & analysis
Path: MD&A / FINANCIAL APPENDICES / OPERATING RESULTS / OPERATING INDICATORS & ANALYSIS

4new fields and 39new deposits were discovered in2011 (consolidated companies and associates); AsofDecember31, 2011, the Companys proven reserves were 5,672mn BOE, including 4,903mn bbl ofoil, and 4.6 trln ft3 ofgas; AsofDecember31, 2011, the Companys...


31. Operating results
Path: MD&A / FINANCIAL APPENDICES / OPERATING RESULTS

Operating results, mn USD 2009 2010 2011 Change, % 2011/2010 Change, % 2010/2009 Revenue Sales of petroleum products, oil and gas 23,773 32,176 43,268 34.5% 35.3% Other sales 532 736 904 22.8% 38.3% Total 24,305 32,912 44,172 34.2% 35.4% Costs and expenses Cost of purchased...


32. Financial Appendices
Path: MD&A / FINANCIAL APPENDICES

EBITDA calculation (mn USD) 2009 2010 2011 Change, % 2011/2010 Change, % 2010/2009 Adjusted EBITDA 6,037 7,271 10,158 39.7% 20.4% Company's share in EBITDA of associates/p> (931) (949) (1,216) 28.1% 1.9% Income from investments 470 9 104 Income from...


33. Financial indicators
Path: MD&A / FINANCIAL INDICATORS

Financial efficiency 2009 2010 2011 Change,% 2011/2010 Change,% 2010/2009 Financial efficiency by adjusted EBITDA, % 24.84% 22.09% 23.00% 0.9 (2.7) Financial efficiency by net income, % 12.76% 10.45% 12.65% 2.2 (2.3) Return on assets (ROA), % 12.07% 10.88% 16.11% 5.2 (1.2) Return on equity (ROE), % 18.58% 17.18% 24.28% 7.1 (1.4) Return on average...


34. Health and Safety
Path: Social Responsibility / HEALTH AND SAFETY

For Gazprom Neft, implementation ofaleadership strategy isnot only about achievement ofthe best production and financial performance. Upscaling ofthe business and achievement ofnew production horizons also require further improvement inthe quality ofenvironmental management and work...


35. Environmental Safety
Path: Social Responsibility / ENVIRONMENTAL SAFETY

Injury rate, LTIFR Source: Company data download xls Fatal injury rate, AAR Source: Company data download xls Number of instances when personnel were evacuated for health reasons Source: Company data download xls Number of road accidents, acc Source: Company data download xls Financial...


36. Work with Media & Government
Path: Social Responsibility / WORK WITH MEDIA & GOVERNMENT

Main Principles The Company maintains adialogue with the Federal Government and with governmental agencies toimprove legal regulation ofthe oil and gas industry, and topromote afavourable investment climate inRussia. Gazprom Neft liaises with the press-centres ofregional administrations...


37. Social responsibility where gazprom neft operates
Path: Social Responsibility / SOCIAL RESPONSIBILITY WHERE GAZPROM NEFT OPERATES

The priorities of theCompanys social activities in theregions where it operates include: Construction and repairs to schools, hospitals, sports and recreational facilities, and housing; Assistance to socially significant projects in thespheres of sport and culture, as well as programs to support children and young people; Preserving...


38. Human resource development
Path: Social Responsibility / HUMAN RESOURCE DEVELOPMENT

Building aworld-class personnel team iscritical for successful implementation ofGazprom Nefts strategy toestablish itself asaglobal leader inthe petroleum industry. The Companys efforts inhuman resource management seek todevelop new competences...


39. Social Benefits
Path: Social Responsibility / SOCIAL BENEFITS

The Companys business units provide various social benefits and payments to employees beyond what they are entitled to under Russian law. Social benefits at most business units include voluntary medical insurance, insurance against accidental injury, food payments, financial assistance...


40. Training & Development
Path: Social Responsibility /  TRAINING & DEVELOPMENT

The Company continued throughout 2011 to build its system of personnel training and development based on a corporate model of competencies, and aligned with business objectives. Five modular corporate training programs were designed and launched during the year (a total...


41. Interaction with Shareholders &Investors
Path: Shareholder Information / Interaction with Shareholders &Investors

The Company places great emphasis oninteraction with its current and prospective shareholders. Levels ofinformation disclosure toGazprom Nefts shareholders and toinvestors have increased significantly recently, asconfirmed byaseries ofinvestor relations studies byindependent agencies aswell asawards tothe...


42. Large transactions & related-party transactions
Path: Appendix / Large transactions & related-party transactions

In 2011, JSC Gazprom Neft was not party to any transactions that could qualify as large transactions under effective Russian law. List of related party transactions in 2011, approved by governing bodies of JSC Gazprom Neft Name of counterparty Object and main terms of the transaction Related party in the transaction...


43. Addresses & contacts
Path: Appendix / Addresses & contacts

FULL NAME OF THE COMPANY Open Joint-Stock Company Gazprom Neft SHORT NAME OF THE COMPANY JSC Gazprom Neft OFFICIAL ADDRESS Russian Federation, 117467, St. Petersburg, ul. Galernaya, 5, Let. À, The Company was registered on 06.10.1995 by the Registration Chamber of the City of Omsk. Statutory Registration Certificate No. 38606450. Main Federal Registration Number...


44. Disclaimer
Path: Appendix / DISCLAIMER

This Annual Report was prepared based on information known to Open Joint-Stock Company Gazprom Neft and its subsidiaries (Gazprom Neft) on thedate of reporting. This Report contains forward-looking statements that represent expectations of theCompanys executive management. Such...


45. Glossary: Key Terms, Definitions &Acronyms
Path: Appendix / Glossary

2D, 3D Seismic exploration. ADR of Gazprom Neft American Depositary Receipt, issued on shares of Gazprom Neft. One ADR is equivalent to five common shares of Gazprom Neft. APS Associated petroleum gas a form of natural gas. Asia Pacific The Asia-Pacific...


46. Additional Information
Path: Appendix / Additional Information

Main macroeconomic factors impacting Company performance The Main macroeconomic factors that have an impact on the Companys performance include: Changing market prices for crude oil and petroleum products; Fluctuation of the ruble-dollar exchange rate and inflation; Taxation; Changing transportation tariffs for crude oil and petroleum products. Brent, USD/bbl Source: Platts (international...


47. KEY INFORMATION
Path: MD&A

This report offers areview ofGazprom Nefts financial position asofDecember31, 2011, and should beexamined together with the Companys financial statements and related explanations, prepared inaccordance with the US Generally Accepted Accounting Principles (USGAAP) Definitions & conversion methodology This...


48. Dividend History
Path: Shareholder Information / Dividend History

The Company paid RUB 21.1bn in2011as dividends inrespect ofthe full financial year of2010, representing22% ofconsolidated net profits (USGAAP standards). This isamong the highest payout ratios inthe industry. Dividend policy isakey aspect ofcorporate governance...


49. Compliance with the code of corporate conduct
Path: Shareholder Information / COMPLIANCE WITH THE CODE OF CORPORATE CONDUCT

Corporate governance atGazprom Neft isbased onanunfailing respect for shareholder rights, ahigh quality ofinvestment planning, alogical system ofinternal audits and risk management, ahigh degree offinancial and information transparency, and aprofessional and efficient Board ofDirectors...


50. Debentures
Path: Shareholder Information / Interaction with shareholders &investors

Planned Changes to theCredit Portfolioin 2012, USD mn Source: Company data download xls Long-term loans and credits toGazprom Neft rose toUSD 6,450bn during 2011, representing anincrease of1.5% from USD 6,357bn atthe end of2010. The current part ofthe...


51. The Board of Directors & theManagement Board
Path: Corporate Governance / THE BOARD OF DIRECTORS & THE MANAGEMENT BOARD

Structure ofGazprom Nefts governing bodies: General Meeting of Shareholders The Board of Directors Human Resources andRemuneration Committee Management Board Chief Executive Officer Audit Commission Audit Committee Internal Audit Department External Auditor The General Meeting ofShareholders...


52. Information about changes in the constitution ofthe Companys Board during the reporting year
Path: Corporate Governance /  INFORMATION ABOUT CHANGES IN THE CONSTITUTION OF THE COMPANYS BOARD DURING THE REPORTING YEAR

From January1, 2011 and until the date ofthe Annual General Meeting held onJune09, 2011, the Board ofDirectors ofGazprom Neft consisted ofthe following members: Miller, Alexey Borisovich (Chairman of the Board of Directors) Golubev, Valery Alexandrovich Kruglov, Andrey...


53. Board committees
Path: Corporate Governance / BOARD COMMITTEES

The Board ofDirectors ofGazprom Neft has two standing committees that ensure the Board operates efficiently: the Audit Committee, and the Human Rresources and Remuneration Committee. The Committees were created tocarry out preliminary in-depth research into...


54. Interactive analysis
Path: EVENTS 2011 / 

Table Line chart Bars * Dividends for 2011 had not been announced as of the Report signing date.


55. OPERATING GEOGRAPHY
Path: Company / 

WORLD RUSSIA OIL PRODUCTION OIL REFINING RETAIL SALES LARGE WHOLESALE MARINE BUNKER GAZPROMNEFT-AERO SHOW ALL


56. Total remuneration paid to directors & members of the management board
Path: Corporate Governance / TOTAL REMUNERATION PAID TO DIRECTORS & MEMBERS OF THE MANAGEMENT BOARD

By resolution of the General Meeting, the Directors who are not employed in executive positions at the Company (Nonexecutive Directors), received payments for their work in 2010 equal to 0.005% of EBITDA as per consolidated US GAAP financial reports filed by Gazprom Neft for 2010. In addition...


57. The internal audit department
Path: Corporate Governance /  THE INTERNAL AUDIT DEPARTMENT

Conduct of internal audits, including: Confirming the accuracy of the Companys financial accounts; Evaluating the efficiency of the internal control system for business processes; Ensuring integrity of the Companys assets; Confirming compliance with legal...


58. Share market & capitalization
Path: Shareholder Information / SHARE MARKET & CAPITALIZATION

Issued securities of Gazprom Neft, key facts Common shares with state registration ID 1-01-00146-, issued on 17.06.2003 Par value of each share: RUB 0.0016 Number of shares issued: 4,741,299,639 Total issue value: RUB 7,586,079.4224 Stock search ID: SIBN...


59. Depositary receipt program
Path: Shareholder Information / DEPOSITARY RECEIPT PROGRAM

Programs ofAmerican and Global Depositary Receipts (ADRs and GDRs) issued onCompany shares continued in2011. The receipts were traded onover-the-counter markets intheUS, the UK, Germany and elsewhere. One ADR isequivalent tofive common shares ofGazprom Neft. Atthe...


60. Gazprom Neft credit ratings in 2011
Path: Shareholder Information / Gazprom Neft credit ratings in 2011

Gazprom Nefts long-term credit ratings were confirmed in 2011 as BBB- (Standard& Poors) and Baa3 (Moodys), with both carrying astable forecast. At theend of 2010, Standard & Poor's reviewed and changed its rating forecast for Gazprom Neft from negative to stable. Simultaneously...


61. Power Generating &EnergySaving
Path: Social Responsibility / POWER GENERATING & ENERGY SAVING

Gazprom Nefts consumption of electrical energy, mn kWH Source: Company data download xls Key energy-saving measures: Reducing electricity consumption bypumps, air cooling devices, transformer substations and compressors through the installation ofenergy-saving equipment, including frequencyadjusted drives; Increasing...


62. Internal Corporate Communications
Path: Social Responsibility / Internal Corporate Communications

In 2011 Gazprom Neft paid a great deal of attention to developing systems of internal corporate communications, with the aim of supporting continuous dialogue between management and employees, improving the quality of the working environment, and perfecting management processes...


63. ADR

  2011. , , , . 5 . 2011. , , 93 (2,0% ). 2011. 1209 ., 1123 . IOB London Stock Exchange, 44 . OTCQx 42 . ( ). The Bank ofNew York Mellon,...


64. Font Face Demo

Font: DIN Condensed Sample Text: Jelly-like above the high wire, six quaking pachyderms kept the climax of the extravaganza in a dazzling state of flux. Юный директор целиком...


65. Company History
Path: Company / Company History

1995 Open Joint Stock Company Siberian Oil Company (JSC Sibneft) established by Decree of the President of the Russian Federation. The Federal Government founded the company by contributing its stake in some of Russias largest oil industry enterprises: JSC Noyabrskneftegaz, JSC Noyabrskneftegazgeophysika, JSC Omsk Refinery...